Articles About Options

The surge of ETF issuances of late to hedge rising interest rate concerns follows a relatively determined Fed’s intention to end its prolonged low interest rate policy this year. While a slack in inflation and global growth worries still have restrained the Fed from taking the step so long... More»

A Bear Call Spread is used when you have a neutral to negative view on a stock.
While this strategy has a limited risk, it also has a limited reward.
So if you're expecting a big down move to occur, you'd be better off looking at a more aggressive bearish strategy that affords unlimited... More»

Today I want to talk about how to determine the correct position size for options.
There are actually several different ways, but I have found the ones below to be the most useful. Plus, it's what I do in my own trading.
As you know, you can get started in options with only a fraction of the... More»

After the open… If traders seem a bit spaced-out this morning, it's because yesterday was one of the weirdest trading days in recent memory. The collapse of the Rouble melded with a flash-crash in oil to scare the market senseless, until, as if by hidden signal, all these trends... More»

After the open… stocks began to rally with conviction after the price of oil apparently found a convincing bottom this morning, though that bottom no longer looks nearly as convincing as it did a couple of hours ago. There are no economic reports, but today's options expiration is... More»

In the old days, hedging was almost a dirty word for investors. Isn't hedging what you do when you are afraid to commit to one thing or another? Isn't this a sure path to mediocrity? The answer is no. Consider that hedge fund managers are considered to be among the smartest traders on the... More»

Friday headlines include: Exxon winning the right to keep working in Russia despite sanctions, Intel investing in Chinese mobile chip firms, two families dropping lawsuits against General Motors in ignition-switch cases, Blackberry losing less than expected and traders looking forward to Alibaba... More»

It was a busy week at MarketIntelligenceCenter.com. Tensions between Russia and Ukraine contributed too much of the week's volatility. We also saw some pretty unimpressive earnings reports from major retailers, compared the companies that make Candy Crush and cigarettes and tried to figure out... More»

Sometimes the market has an element of gambling about it, but it is not pure chance, if you understand the trends that are pushing the numbers around better than the market. What exactly is the market? Unfortunately, the average investor is not the same as the market; studies show that the most... More»

After the Open... The jittery market is today finding that it cannot ignore the allure of great earnings. Before the current trading session, Lululemon (LULU), SolarCity (SCTY) and NVIDIA (NVDA) all blew the Street away with their earnings reports, following on the heels of Stratasys (SSYS), which... More»

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